Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 58.06

-2.9%

12:25 PM EST

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To: BobRealEstate who wrote (16365)	8/29/2000 10:57:30 PM
From: Maurice Winn	Read Replies (1) of 29987

Globalstar LP owns: 2 x SOCC 2 x GOCC 52 satellites in orbit 4 satellites on the ground Royalty rights to handset sales [I don't know how that works] Gateways which are incomplete or still in storage Contracts with various companies [exclusivity agreements linked to gateway ownership] Some gateways [or interest in them] where they own or partly own the service provider. Debtors list Cash in the bank Bits and pieces It's a going concern, which will function for another 10 years with negligible costs [other than salaries, maybe a rocket to launch the 4 spares]. Without debt, the annual operating cost is so low that a new operator could undercut cellphones and develop a huge market as fast as handset production could be accelerated. The bond holders could put this lot on the block and sell it as a going concern for about $30 billion. They would get all their money back. The new owner would be NTT, China Telecom, Sprint, QUALCOMM or some Johny-come-lately who would make Vodafone rue the day they fluffed the launch! This will NOT go the way of Iridium. Anyone who thinks so needs a brain scan. The satellites will NOT re-enter the atmosphere at least until 2010 if not later for most of them. Service to Globalstar subscribers will NOT be interrupted in the event of bankruptcy and new owners, except that they might have to contact the new owners to open an account and get reconnected - that assumes an absolute worst case shambles where Vodafone or other service provider refuses to co-operate with the new owners. Bond holders are wacky to sell their bonds so cheaply. But, as Deeber shows us, there's one born every minute. Yes, there is a risk for GSTRF shareholders - we might get nothing back in a bankruptcy. But I'd laugh and not really be surprised if we got more back than the current share price. [Actually, I'd be disappointed at such a compulsory acquisition] $3 billion [current market capitalisation] for the company with another $2 billion debt is not really too much to pay for a highly-performing constellation with heaps of spectrum and available minutes right now = 10 billion per year [and maybe 20 billion if Q! does HDR and 1x-EV type tricks at the gateways] with phones that work really well and a technology upgrade pathway with no limits. I heard that some companies bid $100 billion just for spectrum in a couple of countries, never mind infrastructure and delays until they roll out their WWeb services in two or three [or more] years. Mqurice

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